We all aware of the real estate slump in the US and how it is expected to continue for the next couple of years before we see a bottom.
Here is a sample of some of the steepest declines in residential real estate since the peak of the market in 2005/2006:
Detroit, MI -24.5%
Miami, FL -23.7%
Sacramento, CA -30.2%
These and other areas are forecasted to continue falling another -15% to -24% over the next 12 months.
Not all areas are facing such steep declines and look more like a return to a balanced market. What has only been a whisper in the msm are those real estate markets in the US that are holding up and even predicted to see an increase in home values over the next 12 months. When considering that the median asking prices are in the $100,00 to $200,000 range, one can conclude these were not "hot" markets in the first place.
Final thought: I am going to paraphrase a quote from Noel Whittaker, Rich Assets Real Estate that I thought was fitting and true to a fault.
The property boom has made us all feel wealthy, but unfortunately it has lulled many into a false sense of security.
Wednesday, May 7, 2008
The best and the worst of the US real estate market
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1 comment:
I am dealing with Toronto houses and I am just glad that we are not so affected by the crisis. Your final thought is nice and partly true but I think that during small credit crunch it is not so easy to get a loan anymore. So you can fell richer but just till you will try to get a mortgage.
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